Bidder's Statement from Sovereign Gold - About Precious Metal ...

20 July 2012
Dear PMR Shareholder,
On behalf of the Board of Sovereign Gold Company Limited (Sovereign Gold), we are pleased to enclose an
Offer to acquire all of your Shares in Precious Metal Resources Limited (PMR).
The Offer is nine Sovereign Gold Shares for every ten PMR Shares you hold.
Although PMR holds good quality prospective tenements, Sovereign Gold believes in the long-term
development potential of PMR’s exploration assets which include base metals and potentially gold in the
exploration licences that PMR holds in its own right.
By moving the PMR assets into the Sovereign Gold we will be able to continue to extend the Sovereign Gold
expertise into these PMR tenements in parallel with Sovereign Gold’s exploration programmes.
Sovereign Gold’s Offer of nine Sovereign Gold Shares for every ten PMR Shares:
(a)
(b)
(c)
provides you value representing a premium to PMR’s closing price for the PMR Shares
before the announcement of Sovereign Gold’s intention to make the Offer;
allows you to become a shareholder in a more diversified company with a broader portfolio
of projects and greater resources to develop PMR’s assets; and
allows you to maintain an interest in PMR’s exploration projects.
If Sovereign Gold’s Offer for PMR is successful, the Merged Group will emerge as a stronger and more
diversified group and one with greater capacity to attract interest from the wider investment community.
I am confident the Merged Group, with its broader asset base, will be better placed to withstand cyclical
downturns in metal prices and volatility in the broader financial markets.
PMR is required to appoint an independent expert to assess whether, in the expert’s opinion, Sovereign
Gold’s Offer is fair and reasonable to PMR Shareholders. PMR’s Target’s Statement, which will provide the
Independent Expert’s Report and includes all the information known to PMR that you would reasonably
require to decide whether or not to accept the Offer, has been sent to you at the same time as this Bidder’s
Statement.
As with any investment there are risks and these are described in section 9 of this document.
The Offer is open until 7:00 pm (AEST) on 27 August 2012 (unless extended under the Corporations Act). If
you have any questions about the Offers please do not hesitate to contact the Sovereign Gold Offer
Information Line on +61 2 9251 7177 (normal charges apply).
Yours faithfully
John Dawkins AO,
Chairman
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